Former Intel Directors Urge Trump and Nvidia to Take Intel Private

Four former directors of Intel Corp., including former FCC Chair Reed Hundt and former U.S. Trade Representative Charlene Barshefsky, are urging Donald Trump and Nvidia to orchestrate a move to take the semiconductor conglomerate private. Writing in Fortune, the directors argue that Intel's current structure is outdated and that separating its chip design and manufacturing units is essential to restoring global competitiveness and securing the domestic semiconductor ecosystem.

The proposal suggests that the United States government, which holds nearly 10% of the company, and Nvidia, with approximately 5% ownership, lead the buyout of public stockholders. Once private, the authors recommend splitting the company into two entities: one focused on manufacturing to compete with TSMC and another dedicated to design. To further unlock shareholder value and attract talent, the plan advises selling Intel's venture capital arm and its controlling stake in Mobileye.

The authors assert that "Hope is not a strategy" and contend that only government-led restructuring can protect national security and potentially generate hundreds of billions in taxpayer returns. This call for action follows a period of stock volatility, including a 28% surge after a Thursday announcement before the stock closed down 3.24% at $29.58 on Friday.